U3C3
A married couple purchase a registered freehold property with the help of the wife's
parents. The parents contributed half the purchase price and occupy the property.
One year after their purchase, the married couple obtain a loan in return for the grant
of a mortgage in favour of a lender. The married couple default on the loan and the
lender seeks to exercise its power of sale.
Is the lender bound by the interests of the wife's parents?
A Yes, the wife's parents have an overriding interest which is binding on the lender.
B Yes, the wife's parents have actual occupation which is binding on the lender.
C Yes, because the lender has failed to overreach the wife's parents' interest.
D No, because the occupation by the parents occurred after the mortgage was
created.
E No, because the lender has overreached the parents' beneficial interest under a
trust.
,Give this one a try later!
E is the correct answer.
The lender paid capital money to two trustees (the married couple). This
had the effect of lifting the beneficial interests of the parents (as a
consequence of their contribution to the purchase price) from the property
and to the proceeds of sale (ie the loan advance from the lender). Option
C is, therefore, wrong.
Option A is wrong because although the parents may have a beneficial
interest under a trust protected as an overriding interest, such an interest
has been overreached by the lender.
Option B is wrong as occupation alone does not create an overriding
interest. This must be coupled with a proprietary interest in land.
Option D is wrong because the facts clearly indicate that the parents were
in occupation prior to the advance by the lender.
U2E2
A woman lives in a house, the registered freehold of which is owned in the sole name
of her civil partner. The woman has resided there throughout the 12 year relationship,
but she has made no direct or indirect financial contributions towards the house.
The relationship has recently broken down and so she seeks advice from a solicitor.
She explains to the solicitor that her civil partner has now moved out of the house and
is threatening to sell it. This is concerning her as she would be left homeless if a sale
did go ahead.
Which of the following statements best describes the advice which should be given
to her by the solicitor in relation to her concerns about a sale of the property?
A She should immediately register a Class F land charges against the name of the civil
partner at the Land Charges Department.
,B She should immediately register a notice in the charges register of the title to the
property.
C She should immediately register a restriction in the proprietorship of the title to the
property.
D So long as she continues to live in the property, a buyer will be bound by her
overriding interest as a person in actual occupation, irrespective of whether her
interest is registered.
E A buyer will be able to overreach her interest by paying the purchase money to at
least two trustees, irrespective of whether her interest is registered or whether she is
living in the property.
Give this one a try later!
, B is the correct answer.
She has home rights under s30 Family Law Act 1996 (FLA) as a non-owning
civil partner. As the title to the property is registered, she should protect
this interest by registering it as a notice in the charges register (it is
classified as a minor interest). If this is done by the date of registration of a
buyer, it will bind the buyer and she cannot be evicted from her home
without a court order whilst the civil partnership is still in existence (in
practice, it is unlikely that a buyer would proceed with a purchase whilst
such a notice remains on the register).
Option A is wrong because the registration of a Class F land charge would
only be applicable if the property had an unregistered title.
Option C is wrong because a restriction would only be relevant if she had a
trust interest and on the facts it appears that no such trust interest has
arisen (and in any event, a restriction simply alerts a buyer to overreach).
Option D is wrong because home rights cannot be protected by actual
occupation as an overriding interest under Sched 3 para 2 Land
Registration Act 2002 (s31(10)(b) FLA 1996).
Option E is wrong because it is only possible for a buyer to overreach a
trust interest, and on the facts no such trust interest has arisen.
U4P7
Jessica, Keith, Lionel and Margaret were friends. In 2012 they purchased the freehold
property "Cliff Cottage" for occasional use as a holiday home. The conveyance to
them contained an express declaration that they were beneficial joint tenants.
In 2015, Keith wrote letters to each of the others saying that he wanted the property
sold so that his share could be paid to him out of the proceeds of sale. His letters
were properly delivered. The property was not sold.
Keith died leaving all his property to Nicola.
Which of the following statements correctly describes the effect of Keith's severance
A married couple purchase a registered freehold property with the help of the wife's
parents. The parents contributed half the purchase price and occupy the property.
One year after their purchase, the married couple obtain a loan in return for the grant
of a mortgage in favour of a lender. The married couple default on the loan and the
lender seeks to exercise its power of sale.
Is the lender bound by the interests of the wife's parents?
A Yes, the wife's parents have an overriding interest which is binding on the lender.
B Yes, the wife's parents have actual occupation which is binding on the lender.
C Yes, because the lender has failed to overreach the wife's parents' interest.
D No, because the occupation by the parents occurred after the mortgage was
created.
E No, because the lender has overreached the parents' beneficial interest under a
trust.
,Give this one a try later!
E is the correct answer.
The lender paid capital money to two trustees (the married couple). This
had the effect of lifting the beneficial interests of the parents (as a
consequence of their contribution to the purchase price) from the property
and to the proceeds of sale (ie the loan advance from the lender). Option
C is, therefore, wrong.
Option A is wrong because although the parents may have a beneficial
interest under a trust protected as an overriding interest, such an interest
has been overreached by the lender.
Option B is wrong as occupation alone does not create an overriding
interest. This must be coupled with a proprietary interest in land.
Option D is wrong because the facts clearly indicate that the parents were
in occupation prior to the advance by the lender.
U2E2
A woman lives in a house, the registered freehold of which is owned in the sole name
of her civil partner. The woman has resided there throughout the 12 year relationship,
but she has made no direct or indirect financial contributions towards the house.
The relationship has recently broken down and so she seeks advice from a solicitor.
She explains to the solicitor that her civil partner has now moved out of the house and
is threatening to sell it. This is concerning her as she would be left homeless if a sale
did go ahead.
Which of the following statements best describes the advice which should be given
to her by the solicitor in relation to her concerns about a sale of the property?
A She should immediately register a Class F land charges against the name of the civil
partner at the Land Charges Department.
,B She should immediately register a notice in the charges register of the title to the
property.
C She should immediately register a restriction in the proprietorship of the title to the
property.
D So long as she continues to live in the property, a buyer will be bound by her
overriding interest as a person in actual occupation, irrespective of whether her
interest is registered.
E A buyer will be able to overreach her interest by paying the purchase money to at
least two trustees, irrespective of whether her interest is registered or whether she is
living in the property.
Give this one a try later!
, B is the correct answer.
She has home rights under s30 Family Law Act 1996 (FLA) as a non-owning
civil partner. As the title to the property is registered, she should protect
this interest by registering it as a notice in the charges register (it is
classified as a minor interest). If this is done by the date of registration of a
buyer, it will bind the buyer and she cannot be evicted from her home
without a court order whilst the civil partnership is still in existence (in
practice, it is unlikely that a buyer would proceed with a purchase whilst
such a notice remains on the register).
Option A is wrong because the registration of a Class F land charge would
only be applicable if the property had an unregistered title.
Option C is wrong because a restriction would only be relevant if she had a
trust interest and on the facts it appears that no such trust interest has
arisen (and in any event, a restriction simply alerts a buyer to overreach).
Option D is wrong because home rights cannot be protected by actual
occupation as an overriding interest under Sched 3 para 2 Land
Registration Act 2002 (s31(10)(b) FLA 1996).
Option E is wrong because it is only possible for a buyer to overreach a
trust interest, and on the facts no such trust interest has arisen.
U4P7
Jessica, Keith, Lionel and Margaret were friends. In 2012 they purchased the freehold
property "Cliff Cottage" for occasional use as a holiday home. The conveyance to
them contained an express declaration that they were beneficial joint tenants.
In 2015, Keith wrote letters to each of the others saying that he wanted the property
sold so that his share could be paid to him out of the proceeds of sale. His letters
were properly delivered. The property was not sold.
Keith died leaving all his property to Nicola.
Which of the following statements correctly describes the effect of Keith's severance
